Section 21: Punishment for contravention of section 3

Q: What does Section 21 of The Banning of Unregulated Deposit Schemes Rules, 2020 (TBUDSR) deal with?

Section 21 TBUDSR pertains to "Punishment for contravention of section 3". It is part of the The Banning of Unregulated Deposit Schemes Rules, 2020, a legislation enacted by the Parliament of India. Section 21 of The Banning of Unregulated Deposit Schemes Rules, 2020 (TBUDSR) prescribes punishment for contravention of section 3. As verified on 22 May 2026.

Q: Is Section 21 TBUDSR still in force?

Yes, Section 21 of the The Banning of Unregulated Deposit Schemes Rules, 2020 is currently in force across the Republic of India.

Q: What is धारा 21 TBUDSR?

धारा 21 TBUDSR is the Devanagari Hindi reference for Section 21 of the The Banning of Unregulated Deposit Schemes Rules, 2020. Section 21 of The Banning of Unregulated Deposit Schemes Rules, 2020 (TBUDSR) prescribes punishment for contravention of section 3. As verified on 22 May 2026.

Q: What is Dhara 21 TBUDSR?

Dhara 21 TBUDSR is the Roman Hindi reference for Section 21 of the The Banning of Unregulated Deposit Schemes Rules, 2020. "Dhara" means "Section" in Hindi. Section 21 of The Banning of Unregulated Deposit Schemes Rules, 2020 (TBUDSR) prescribes punishment for contravention of section 3. As verified on 22 May 2026.

Q: How to cite Section 21 of The Banning of Unregulated Deposit Schemes Rules, 2020?

Cite as: "Section 21, The Banning of Unregulated Deposit Schemes Rules, 2020 (TBUDSR)" in legal briefs. For academic writing, use the BlueBook format: The Banning of Unregulated Deposit Schemes Rules, 2020, 2020, § 21 (India).

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(1)

Any deposit taker who solicits deposits in contravention of section 3 shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to five years and with fine which shall not be less than two lakh rupees but which may extend to ten lakh rupees.

(2)

Any deposit taker who accepts deposits in contravention of section 3 shall be punishable with imprisonment for a term which shall not be less than two years but which may extend to seven years and with fine which shall not be less than three lakh rupees but which may extend to ten lakh rupees.

(3)

Any deposit taker who accepts deposits in contravention of section 3 and fraudulently defaults in repayment of such deposits or in rendering any specified service, shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to ten years and with fine which shall not be less than five lakh rupees but which may extend to twice the amount of aggregate funds collected from the subscribers, members or participants in the Unregulated Deposit Scheme.

Explanation.—For the purposes of this Act, -